Assam PSUs in the red despite increase in investment

Out of 41 working PSUs, 9 PSUs earn profit while 32 incur losses.

Despite a 27 per cent increase in investment, the public sector undertakings (PSUs) of Assam government have fared badly as far as their balance sheets are concerned in the year 2008-09.

As per the Comptroller and Auditor General (CAG) report for the year 2008-09, which was tabled in the state assembly recently, out of 41 working PSUs, 9 PSUs earned profit of Rs.39.05 crore and 32 PSUs incurred loss to the tune of Rs.211.43 crore.

As on 31 March 2009, there were 51 PSUs, of which 47 were government companies and 4 were statutory companies.

During the year 2008-09 neither any new PSU was established nor any PSU was closed down.

The losses of PSUs have been mainly attributed to deficiencies in financial management, planning, implementation of project, running their operations and monitoring.

As on 31 March 2009, the investment (capital and long-term loans) in 51 PSUs was Rs.3,127.20 crore. The investment grew by 27.43 per cent from Rs.2,454.11 crore in 2003-04 to Rs.3,127.20 crore in 2008-09.

The major contributors to profit were Assam Gas Company Limited (Rs.18.08 Crore), Assam Petrochemicals Limited (Rs.9.07 crore),

Assam Financial Corporation (Rs.6.05 crore). The heavy losses were incurred by Assam Electricity Grid Corporation Limited (Rs.68.80 crore), Central Assam Electricity Distribution Company Limited (Rs.38.91 crore).

“The state PSUs are not functioning efficiently and there is tremendous scope for improvement in their overall performance. They need to imbibe greater degree of professionalism to ensure delivery of their products and services efficiently and profitably. The state government should introduce a performance based system of accountability for PSUs,” the CAG report stated.

The CAG has also suggested winding up of operations of 10 non-working PSUs as they don’t have commercial liquidation.